Building Inspection

Plain-English definition. A building inspection is a pre-purchase report by a qualified inspector — usually a licensed builder or surveyor — documenting the structural condition and visible defects of a property.

How it works in Australia. Inspections are governed by Australian Standard AS 4349.1 Inspection of buildings — Pre-purchase inspections — Residential buildings. The report covers the roof exterior and interior, sub-floor space, all rooms, the site and outbuildings. It does not cover specialist items — pest, electrical compliance, asbestos testing, plumbing CCTV — without a separate engagement. NSW Fair Trading and Consumer Affairs Victoria recommend independent inspections before unconditional exchange.

Concrete example. A $720,000 brick veneer in Brisbane has a $550 building inspection. The report finds active termite damage in a wall frame, a cracked roof tile causing a slow leak, and a non-compliant pool fence. Combined remediation cost is estimated at $28,000. The buyer uses the inspection clause to renegotiate $20,000 off the price, or terminates and forfeits only the inspection fee.

Common confusion. Buyers often skip inspections at auction because auction contracts are unconditional. The correct sequence is to inspect before auction day, not after. Vendor-supplied inspection reports are written for the seller and should not be relied upon — always commission your own.